Supreme Court grants ASIC’s wish
A Queenslander who encouraged investors to contribute more than $1.5 million to a group, has been permanently restrained from providing financial services, by the Supreme Court.
The Australian Securities and Investments Commission (ASIC) has applied for Dr Roger Munro to be permanently restrained from providing financial services, after it found he had being operating a financial services business in Australia without an Australian Financial Services Licence (AFSL) since August 2011, with the assistance of his wife, Kathleen Munro.
The court heard that Dr Munro would approach potential participants in Australia, often family members or friends, requesting them to provide money which would be pooled and used by the first respondent to conduct trading through an entity, with a minimum investment of $20,000.
In a submission to the court, Dr Munro claimed that the true nature of the relationship between the participants and himself (or rather the entity through which the trading was conducted) was that of lender and borrower and he was not therefore dealing in a financial product, however the court rejected the claim.
The court declared that Dr Munro had contravened section 911A of the Corporations Act and ordered that he be permanently restrained from carrying on a financial services business in this jurisdiction, without holding an AFSL.
In making the declaration, the court stated that Dr Munro "has sought and obtained funds from investors within Australia who have paid him large sums of money for trading in international markets in circumstances where he does not hold an AFSL".
"In such circumstances the public interest and the marking of the court's disapproval of such conduct makes it appropriate to grant some form of declaratory relief".
The court also order that Kathleen Munro be permanently restrained from permitting or authorising Dr Munro from using any bank or brokerage accounts in her name for the purposes of the first respondent carrying on a financial services business within this jurisdiction (Australia) without the first respondent holding an ASFL.
AUTHOR
Nicholas O'Donoghue
Recommended for you
With an advice M&A deal taking around six months to enact, two experts have shared their tips on how buyers and sellers can avoid “deal fatigue” and prevent potential deals from collapsing.
Several financial advisers have been shortlisted in the ninth annual Women in Finance Awards 2025, to be held on 14 November.
Digital advice tools are on the rise, but licensees will need to ensure they still meet adviser obligations or potentially risk a class action if clients lose money from a rogue algorithm.
Shaw and Partners has merged with Sydney wealth manager Kennedy Partners Wealth, while Ord Minnett has hired a private wealth adviser from Morgan Stanley.
